�۶���Ƶ

Podcast: Investors Club: CIO’s Teck Leng Tan on our EURUSD forecasts and more (11 min)

US President Donald Trump on Wednesday unveiled a new artificial intelligence (AI) blueprint that aims to boost the development of the technology in the country as Washington seeks to maintain its edge in the global race.

The so-called AI Action Plan, which includes some 90 recommendations, calls for the export of US AI software and hardware, as well as a crackdown on state laws deemed too restrictive for AI development. Trump also signed three executive orders on Wednesday that incorporated elements of the plan, including the loosening of environmental rules to speed up AI infrastructure projects, establishing rules for chip exports, and seeking to limit political bias in AI technology.

The announcement came after the administration’s move last week to ease restrictions on overseas sales of AI chips, including NVIDIA’s H20, as part of the trade understanding reached with China. It also marked a departure from former US President Joe Biden’s “high fence” approach in his AI policy.

While the details of how the plan will be implemented have yet to be fully fleshed out, we think the administration’s move broadly aligns with our positive view on the long-term opportunities in AI and power and resources. The latest tech earnings results have also been encouraging.

Recent tech earnings point to strong AI demand. Alphabet reported a second-quarter revenue and earnings beat on Wednesday. The company raised its 2025 capital spending guidance from USD 75bn to USD 85bn due to “strong and growing demand” for its cloud services, which saw growth accelerate to 32% year over year. Separately, ServiceNow, the cloud computing platform, reported strong bookings growth for the quarter, and said its AI annual contracted value should reach USD 1bn by next year. Without taking any single-company views, the latest results suggest reality may surpass our near-term AI capital spending forecasts for 2025, while AI monetization remains robust. These trends should continue to underpin the AI growth story in the coming years.

Fewer restrictions are positive for broader AI and tech supply chains. Instead of dividing countries into tiers and limiting their access to advanced AI technologies, Trump’s AI Action Plan instructs the Commerce Department to consider measures to allow approved allies to purchase “full-stack AI export packages,” which include hardware, software, models, and applications altogether. The federal government would also ask businesses and the public about existing regulations that hinder AI adoption, with an eye toward rolling back those rules. While details have yet to emerge, we think policies that promote AI exports and development would add to already robust global demand and rising adoption, supporting broader industry sentiment.

Putting emphasis on adequate energy supply should support power and resources companies. In addition to loosening environmental regulations to fast-track the construction of data centers, the plan also recommends utilizing federal land to expedite development of the projects, including any power supplies. This suggests the administration is aware of the accelerating electricity demand due to the rapid expansion of AI data centers, and the vast amounts of investment that would be required to enhance energy infrastructure to meet the demand.

So, while tariffs on semiconductors remain an uncertainty, we retain conviction in the long-term potential of opportunities related to AI and power and resources. We favor a balanced and diversified exposure to quality AI stocks, and would position across the electrification value chain. Investors can also consider structured strategies to navigate near-term volatility.